M. Tamim, an adviser to the head of the interim govt. responsible for the Ministry of power energy and mineral resources, said that the country needs an investment of $8 Billion in the energy sector to fulfill the rising demand of energy by 2025, as reported by Reuters.

The official also highlighted that Bangladesh falls short of around 100 Million cubic feet gas (mmcf) every day though the country has 13.54 Trillion cubic feet (tcf) of gas reserve. Currently, the gas production is around 1,738 mmcf whereas the country needs 1,833 mmcf of gas every day. Thus, Bangladesh still needs somewhere around 24 tcf more gas in order to maintain the economic growth at 7%.

Bangladesh needs huge investment in its dwindling power sector as the country is facing acute shortage of power and water during summers. The power sector of the country is a low-level development sector with weak energy institutions aggravating the situation. Besides, the poorly growing economy of the country is responsible for under-performance of the energy sector.

According to the energy industry experts, Bangladesh is facing three roadblocks and three benefits in the development of energy sector. Weak bureaucracy, depleting oil and gas reserves, and commodity prices are posing three big challenges for the sector while continuous development, strong demand for gas, and low operating costs are positives for the energy sector.

The rising demand for oil and gas is getting strong support from gradually developing industrial sector. Furthermore, people are increasingly getting educated and their status is also rising, hence giving importance to own a personal automobile. This is generating more demand for energy. Apart from this, the energy companies are looking to establish their bases in other countries to get international acclaim and success.

According to a Research Analyst at RNCOS, “The slow developing energy sector of Bangladesh is in dire need of investment. Hence, this is a perfect time for foreign and domestic players to take advantage from the country’s energy sector as the country is offering favorable conditions.”

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